Advantages of POS System for Retail
POS System Advantages And Benefits For Retail Stores
The terms cash register and point of sale system are often interchangeably used. But there are many advantages of a point-of-sale system, over cash registers, as a company management solution. A POS helps retailers save time and money and allows them to focus on their customers. A POS also helps businesses become more efficient by gathering and analyzing data from sales transactions.
You need a point of sale (POS) system or cash register to process transactions and sales. A manual cash register had previously been the preferred payment method of some small brick-and-mortar businesses. For business performance, an all-in-one system of POS—with advanced business management functions—will help your retail store’s business operations be more competitive and run more smoothly. A POS also improves customer satisfaction ratings through catering to customer needs and monitoring business trends.
In critical business matters like accepting and storing payments (like cash and credit cards), the analog technology of a basic cash register is no longer enough. A POS is an essential tool with benefits to retailers as well as to the average customer. This is especially true when the cash machine can integrate with a payment terminal.
For the most part, a credit card machine cannot directly integrate with an antiquated, clunky cash register. A POS terminal, on the other hand, does integrate and offers a competitive advantage to retailers. Incorporating a credit card reader into your point-of-sale system streamlines sales and accounting operations and improves daily business tasks while also speeding transaction times. In addition, when credit card processing integrates in a modern POS register, your payments reconciliation takes less time to manage.
Merchants who do not have large inventory or who do not require POS software’s more advanced features may operate just fine with a cash register. Or, if you have a small retail store or restaurant and primarily accept cash payments and you’re on a tight budget, a cash register is a viable option. On the other hand, modern POS software and hardware with cutting-edge features provide the tools you need to manage and grow your company. Even though a point of sale system also operates as a cash register, it gives you access to a wealth of data about your business, which can and should be used to your competitive advantage.
It’s possible to connect a POS terminal to a server in the backroom or another location, as well as to other POS terminals. Handheld devices can be wirelessly connected to the main system and expanded. A POS conveniently keeps track of various tasks and makes adjustments as your requirements evolve.
The sophisticated and detailed sales reports provided by a POS system are the main advantage over a cash box or a cash register. You can examine sales data in various ways with the software, including by SKU (item sold), period, promotion, store (if you have more than one), or even sales representative. A POS better tracks inventory and alleviates employees from manually recording this time-consuming task.
Listed below are further advantages of a POS system:
Every business owner relies on reports. Point of sale systems quickly collect and manage information. You can retrieve this business information at any time, anywhere to make better-informed business decisions. To successfully achieve your business objectives, you must ensure business efficiency and stay ahead of your competition. A company’s ability to make data-driven business decisions and track sales by department, item, number of hours worked and labor costs are critical to the company’s growth.
Faster Transaction Times
POS devices offer a more user-friendly transaction experience than traditional cash registers. A POS scans, edits, and completes transactions with a barcode scanner, authorizes credit cards and prints customer receipts. Refunds and voids are all made easier with the point of sale systems.
Easier Training and Minimal Human Error
In a digital age, a cash register is quickly becoming an antiquated tool. A POS system is much easier to use than a traditional cash register because of the intuitive user interface. They’re often even compatible with tablets and other touchscreen devices.
For every 300 characters typed, an employee makes an error on a cash register. What percentage of barcodes incorrectly scan? For every 15,000 to 36,000 trillion characters scanned, there’s only one error. When customers have a bad experience with customer service, 62% will not go back to that particular store. A POS system saves the company money and improves customer service.
POS systems also save a company a significant amount of time. Inputting incorrect data into an old cash register (e.g., the wrong price or the wrong item) results in system failures. Because a POS system stores information on a database, it ensures sales are entered and priced accurately and can be easily changed.
Real-time Inventory Tracking
A cash register does not allow you to see real-time inventory like a point of sale device. Real-time data allows for highly accurate inventory counts and product movement tracking. There are typically two types of inventory methods offered by POS systems: permanent and reoccurring.
A POS keeps track of how many items your business has, and removes items from your inventory as you scan them at the checkout. Periodic inventory allows you to pull reports every year, quarter or month and compare them to your sales records to keep track of the many items you have in your business.
Expanded Payment Capabilities
The ability to accept various payment types, such as EMV chip cards, contactless payments (NFC), and mobile wallet payments, such as Apple Pay, Android Pay and Samsung Pay, is another benefit of a point of sale. Allow customers to pay with a variety of methods to increase revenue and customer satisfaction. According to a poll, 44% of respondents prefer to pay with debit cards, while 33% prefer to pay with credit cards. As a result, cash is waning in importance.
Your point of sale software can help you minimize the time you spend on scheduling. Modern POS systems include a time clock functionality, so your employees can clock in and out on a POS terminal. This functionality also provides control measures to make sure employee identity is verified for clock-ins and access to your system—especially for functions including voids and returns to minimize shrinkage from employee theft. This is another of the many advantages of a point of sale over a traditional cash register.
When you use a POS system, your customers receive receipts that can include customized information, rather than just the date and the sale amount. Items like descriptions, prices and savings from a sale or coupon can all be provided by POS systems using inventory data. You may also customize a specific part of the receipt, such as the footer, depending on your system. You many also print coupons right on the receipt or provide information about your rewards program.
A POS (point-of-sale) system makes the accounting process much easier to manage. Accountants are forced to sort through hundreds of receipts with traditional cash registers but can print reports and import data directly into their accounting software with a POS system.
Optimize the Checkout Experience
A barcode scanner help to make checkout simpler and expedites the checkout process at the checkout counter. The system receives all product information in the blink of an eye. In addition, cashiers have direct access to customer data right at the point of sale, and they can add new sales to a customer’s history. Cashiers can award customers with points based on transaction totals. These points can then be used to leverage future purchases. When your stores run a loyalty program, your customers come back time and time again.
Loyalty programs and various payment gateways can be integrated with a POS to help your stores better market to customers and encourage them to use reward points or gift cards for future purchases.
BNG Point-of-Sale are POS solutions that improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need. Connect with us to learn more.